The Sisters of Mercy dedicate their lives to the service of the poor, the sick and the uneducated.

The Sisters of Mercy sought to fulfill that vow of service by responding to what had become a national housing crisis impacting the poor throughout the United States and in Connecticut. In January, 1983, Sisters concerned with the plight of homeless persons and with the need for decent, affordable housing came together to address what they might do to alleviate the human suffering involved and to bring about systemic change in this area. They decided to ask the entire Community of Mercy to make housing and shelter for the materially poor and destitute a corporate ministry.

At the time, St. Elizabeth's was being operated by Center City Churches, an ecumenical group. It housed a residence, soup kitchen, and day shelter. The property was owned by the Daughters of the Holy Spirit, who were trying to sell it. Center City Churches declined to purchase the property for various reasons. There was fear that if it was bought by a developer, as most surrounding property had been, the residents would have to relocate. With the lack of affordable units and the fact that many of the residents needed supportive services, the prospects of their finding other decent, appropriate, affordable places were grim.

The Sisters investigated the possibility of purchase of the property and after appropriate study, the decision was made to proceed with the purchase and to form a new corporation directed to seek out, initiate, advocate and support housing and shelter services as part of the ministry of the Sisters of Mercy of Connecticut. The ministry of housing and shelter had begun.

Mercy Housing and Shelter Corporation was formally established in August, 1983. Closing on the property at 118 Main Street and 7 Charter Oak Place, Hartford, took place in September 1983.

Center City Churches continued to manage St. Elizabeth's until November 1, 1983, when Mercy Housing and Shelter Corporation appointed a Director.

The Board of Trustees worked closely with the Director of St. Elizabeth's and with the Sisters of Mercy to clarify the philosophy and the mission of the Corporation, to assist with the transition in management, and to raise funds for immediate needs. Special funding projects were implemented and grant applications were submitted.

As the Board of Trustees considered other housing needs and possible projects, the need for an Executive Director of Mercy Housing and Shelter Corporation who could oversee its increasingly complex operations became apparent.

In January 1987, the first full-time Executive Director of Mercy Housing and Shelter Corporation was appointed. Up to this time, St. Elizabeth's had been synonymous with Mercy Housing and Shelter Corporation. Now it became a separate entity—the first of many projects to be initiated and operated by Mercy Housing and Shelter Corporation.